Business Services Action Item

DATE:	Tuesday, October 16, 2018
TO:	School Board Members
FROM:	Jeff Eakins, Superintendent
SUBJECT / RECOMMENDATIONS
Approve Current Refunding of the Outstanding Certificates of Participation (COPs), Series 2015B (the "Refunded Certificates") (Business Services Division) Adopt the Board Certificate Resolution authorizing the refunding of the Refunded Certificates.  Authorize the use of a syndicate of underwriters including Citigroup for this transaction.  Authorize staff to work with the District's Financial Advisor and Bond Counsel to proceed with the refunding as long as market conditions remain favorable. Recess as members of the School Board and convene as the School Board Leasing Corporation. Adopt the Corporate Resolution authorizing the refunding of the Refunded Certificates. Adjourn as members of the School Board Leasing Corporation and reconvene as the School Board.
EXECUTIVE SUMMARY
The District's COPs, Series 2015B, currently outstanding in the amount of $73,990,000, are held in a "direct placement" facility with Wells Fargo Bank, N.A., and bear interest at a floating rate tied to the LIBOR Index.  On December 31, 2018, that facility will expire and the COPs are subject to a mandatory tender for purchase.  On or prior to that date, the District must arrange for an extension of the existing facility, secure a replacement facility, or remarket or refinance the 2015B COPs in a different interest rate mode.  The District's Financial Advisor, Ford & Associates, Inc., has recommended the District refinance the debt into a fixed rate structure with a lower risk profile.  Based on market conditions as of September 17, 2018, and assuming no substantive change to the principal structure, Ford & Associates, Inc., estimates that the refunding can be executed via negotiated public offering at a Total Interest Cost of approximately 3.35 percent. This agenda has been reviewed as to legal form and sufficiency by Nabors, Giblin and Nickerson, the District's Bond Counsel, and as to financial accuracy by Ford & Associates, Inc., the District's Financial Advisor.  Representatives from both will be present to answer questions and assist the Board in this endeavor. A copy of both the Certificate Resolution and the Corporate Resolution are available for viewing in the School Board office.
STRATEGIC OBJECTIVES
• Establish a strong foundation of financial stewardship
FINANCIAL IMPACT (Budgeted:  No)
There will be issuance costs estimated not to exceed $650,000 (including Underwriter's Discount).  These amounts will be included in the transfer from Local Capital Millage to Debt Service fund.
EVALUATION
SUBMITTED BY:  Steve Brady, Department Manager, Cash Management

Susan Garcia		Gretchen Saunders
General Manager, Budget, Cash Management, and Federal Finance (813) 272-4064		Chief Business Officer (813) 272-4270
		C 6.02
Hillsborough County Public Schools (Florida) * Mtg.#20181016_909 (Board Meeting) * Section C Item# 6.02